The Impact of Job Satisfaction and Organizational Commitment on Employee Turnover Intention: With Special Reference to Corrugated Box Manufacturing Industries in Sri Lanka

Abstract

During the past decade employee turnover has become a very serious issue for many organizations in the business world and it has negatively impacted on the growth of the manufacturing sector as well as service sector. Managing retention of employees and keeping the turnover rate below the industry level is one of the most challenging issues for any organization. Recent studies reveal that 81% of current employees are interested in changing their jobs within next 12 months. The purpose of this study is to examine and find out the influences of job satisfaction and organizational commitment on employee turnover intention in a corrugated box manufacturing industries in Sri Lanka. Questionnaire method was used to collect data from 240 employees in five main corrugated box manufacturing companies in Sri Lanka. Both descriptive and inferential statistical techniques were applied to analyze the data. Percentage analysis was used to explain data. Kolmorogov-Sminar test and Shapiro-Wilk test used to test the normality of turnover intention. It was revealed that the distribution of that data is non-normal. Hence the Spearman rank Correlation Coefficient was applied to measure the relationship between independent variables and dependent variable in this study. The results of the research highlighted that there is a weak negative relationship between job satisfaction and employee turnover intention and it is statistically significant at 0.05 level. The relationship between organizational commitment and employee turnover intention is also weak negative and it is statistically significant at 0.05 level. This finding can be applied to prepare a strategy for retaining employees within the organization.